Question 2. You decided to select a supplier who offers the lowest…
QuestionQuestion 2. You decided to select a supplier who offers the lowest…Question 2. You decided to select a supplier who offers the lowest expected price. The expected price is subject to quoted price, contingency price, exchange rate, and two different types of failures. If there is no failure, quoted price is applied. Otherwise, contingency price is applied. Contingency price is $10, which is the same for all suppliers. Exchange rates for foreign suppliers follow the normal distribution. Political failure follows the uniform distribution.You use Analytica modeling/simulation to compute the expected price based on data in Table 3.Table 3. Data for Question 2Supplier Location Quoted price Exchange rate Product & Firm failure Political failureA Vietnam 2.5 Norm(1.5, 0.3) 0.15 Unif(0.1, 0.3)B Vietnam 2.7 Norm(1.5, 0.3) 0.13 Unif(0.1, 0.3)C Cambodia 2.2 Norm(1.7, 0.4) 0.17 Unif(0.3, 0.6)D Cambodia 2.4 Norm(1.7, 0.4) 0.15 Unif(0.3, 0.6)E Indonesia 2.8 Norm(1.8, 0.2) 0.14 Unif(0.2, 0.7)F Indonesia 3.0 Norm(1.8, 0.2) 0.12 Unif(0.2, 0.7)G Japan 5.2 Norm(0.9, 0.1) 0.05 Unif(0.05, 0.09)H Germany 5.4 Norm(0.8, 0.1) 0.04 Unif(0.02, 0.05)I Michigan, US 6.0 1 0.07 Unif(0.03, 0.07)J Georgia, US 5.8 1 0.09 Unif(0.03, 0.07) Fill out Table 4 and determine the supplier with the lowest expected price.Table 4. Expected prices of suppliersSupplier Expected price Lowest price? Yes or NoA B C D E F G H I J Indicate the supplier you selected. Also, submit the Analytica file that supports your selection. Engineering & TechnologyIndustrial EngineeringSupply Chain ManagementCED 6983Share Question
